Cathie Wood's investment firm ARK Invest bought 28,589 shares of Robinhood Markets (Nasdaq: HOOD) worth approximately $3.6 million on Sep. 4. A veteran investor, Wood is a prolific trader of
Cathie Wood's investment firm ARK Invest bought 28,589 shares of Robinhood Markets (Nasdaq: HOOD) worth approximately $3.6 million on Sep. 4.
A veteran investor, Wood is a prolific trader of crypto-linked equities such as Circle Internet Group (NYSE: CRCL), Bullish (NYSE: BLSH), Block Inc. (NYSE: XYZ), Bitmine Immersion Technologies (NYSE: BMNR), etc.
Wood bought Robinhood shares as the company got involved in a controversy with the entertainment giant, AMC Entertainment Holdings (NYSE: AMC).
Related: Cathie Wood buys millions in popular crypto stock on Chelsea FC deal
Robinhood is an e-brokerage platform popular among young retail traders for its equity, crypto, and stock token offerings.
A stock token is a digital token created on a blockchain that tracks the price of the stock of a publicly listed company. Though the token offers indirect exposure to the company, it doesn't offer any traditional shareholder rights.
A tokenized stock is only a synthetic version of a stock, with no official relation to the company publicly listed on a stock exchange.
As reported earlier, AMC CEO Adam Aron sharply criticized Robinhood for offering a tokenized version of the AMC stock without registering under U.S. securities laws and threatened legal action if the brokerage firm didn't stop offering the synthetic asset.
Robinhood's chief legal officer Dan Gallagher said the firm is aware of the U.S. securities laws and won't stop offering the AMC stock token. He dared Aron to send his lawyers.
A Robinhood spokesperson told TheStreet Roundtable,
"We stand firmly behind our Stock Tokens and their ability to provide international exposure to US equities, modernize the financial system and expand opportunities for ownership globally.”
Earlier this week, the Robinhood stock earned a price target upgrade from Morgan Stanley due to its more than two million users generating $156 million in Q2 revenue while “adopting other products.”
The Robinhood stock closed 2% lower at $122.11 on Sep. 4 following the latest controversy with AMC.
Robinhood Markets (Nasdaq: HOOD), Source: Yahoo FinanceHowever, the stock hit as high as $124.88 this week as part of the broader crypto rebound. In fact, it posted its best performance since early January.
Related: Jim Cramer issues bullish call on Robinhood after Morgan Stanley upgrade
